Explain why a firm can earn more profit by price discrimination than from setting a uniform price
What will be an ideal response?
First, price discrimination allows a firm to charge a higher price to customers who are willing to pay more than the uniform price. The firm captures more of the consumer surplus. Second, a price-discriminating firm can sell to additional customers who were unwilling to pay the uniform price.
Economics
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Maximizing output by following the principle of comparative advantage requires
a. specialization only b. exchange only c. both specialization and exchange d. neither specialization nor exchange e. either specialization or exchange, but not both
Economics
When the prices of goods and services rise
A. the value of money falls. B. exports increase. C. imports decrease. D. the value of money rises.
Economics